Revenue Sharing

-- Overview --

President Ford believes that the General Revenue Sharing
program, initiated in 1972, has been a resounding success, as it
supports and embodies his belief in the concept of Federalism --
that unique aspect of the American system which permits and
promotes creativity and freedom of action simultaneously at three
levels of government. He has said that "Federalism
enables our people to approach their problems through the
governments closest to them, rather than looking to an all-powerful
central bureaucracy for every answer."

General Revenue Sharing is an effective, efficient and
equitable program providing general purpose fiscal assistance to
the States and units of local government. For this reason,
President Ford sent to the Congress for action the State and
Fiscal Assistance Act Amendments of 1975 which authorize the
extension and revision of General Revenue Sharing. The
principal elements of the renewal legislation that he has
proposed include:

Retention of the basic revenue sharing formula now in
use.

Authorization of funds for another five and three-quarters
years.

Continuation of the current level and method of
funding, with annual increases of $150 million.

Increased public participation in determining the
use of shared revenues.

Improved enforcement of the civil rights provisions
to insure that revenue sharing funds are not used in a
discriminatory manner.

The President again strongly urged passage of this legislation
in his State of the Union message of January 19, 1976:

"Last year I strongly recommended a five-year
extension of the existing revenue sharing legislation which
thus far has provided $19 billion to help State and local
units of government solve problems at home. This program has
been effective with decision making transferred from the
Federal government to locally elected officials. Congress
must act this year or State and local units of government
will have to drop programs or raise local taxes."

In the same effort to return decision making to the local
control, President Ford has recommended the consolidation of
some 59 Federal programs and the provision of flexible Federal
dollar grants to help states, cities, and local agencies in such
important areas as health, education, child nutrition, and social
services:

"This flexible system will do the job better and
do it closer to home."